UK SMEs have shown tremendous resilience in recent years. We know it can be difficult to run a small business even without global uncertainty and economic uncertainty. So, in preparation for the start of the 2023/24 tax year, we’ve put together some resources to guide you through a smooth payroll year-end.
We also introduced new Checklist Streamline your tasks within Xero Payroll to make it easier towards the end of the year. Please do not forget. There are many other resources. Support article, 24/7 dedicated payroll team and webinar Access anytime!
Preparation for final payment execution
Before we get to the final payout run for this tax year, there are a few key tasks we need to do to get there. Payroll compliance is especially important at the end of the year. So make sure you have collected, processed, and approved all remaining leave requests, timesheets, and overtime so that you can get your employees’ final paychecks.
Account Transactions, Gross to Net, Gross to Net, P32 and P11 reports. By taking some time to reconcile these reports, you can spot any irregularities in your accounts’ or employees’ final payouts and avoid having to redo them later in the process.
|If your business is in the construction industry, you may also need to review your Construction Industry Scheme (CIS) Suffered report for the tax year to make sure you have made adjustments. This will prepare you to enter the exact values for your final submission. tax year.|
The goal here is to have everything ready, in the correct order, and to execute the final payment. This ensures that all information submitted to HMRC is correct.
Execute final payment execution
Once all the preparatory work has been completed and the dust has been dusted off, final payments will be made between March 6, 2023 and April 5, 2023.
If your payment date happens to be April 5, 2023, which means you have your 53rd week payment, don’t panic. Xero handles this by automatically adjusting tax calculations.
Also remember that you must notify HMRC of the final payment submission even if there are no payments due in the final period of the tax year.Employer Payment Summary (EPS) Post a NIL Paylan.
If you find a discrepancy and need to adjust your final payment run, don’t stress! Changes must be made by April 19, 2023.
Please note that you have a legal obligation to provide your employees with a P60 report by May 31, 2023. zero me? There are a few simple steps to generate and generate. Check the P60 report.
A good start to the new tax year
Nothing beats a fresh start. A new checklist to guide you through reviewing and updating your setup for the 2023/24 tax year.
Before you start processing the first payroll run of the new tax year, check the following to update your payroll:
- employment allowance – Check if you are eligibleIn that case, the allowance must be activated within the next tax year. HMRC tab It’s under salary settings.
- National Insurance – Check and note how the Director’s National Insurance is calculated and the Employee’s National Insurance categories. deferred certificate.
- tax code – Xero automatically handles tax codes by making the necessary updates. We’ve got you covered, but we still encourage you to review all employee tax codes.
- salary benefits – If this is something you are proposing or considering, you must register with HMRC before the start of the new tax year. For existing benefits-in-kind that you’re processing through Xero Payroll, check your benefit amounts and availability dates for the new tax year. For Cars and Vans, leave the ‘Available Dates’ blank if you wish to carry forward benefits. Xero Payroll automatically inserts new benefit lines for processing on the first payment run. Complete and submit Employer Class 1A National Insurance P11D(b) by July 6, 2023. From 6 April 2023, a P11D or P11D(b) can only be submitted through HMRC’s PAYE online service.
- CIS corporate tax UTR suffered – To be able to claim CIS incurred in Employer Payment Summary (EPS), you must complete the Corporate Tax UTR Reference field under Payroll Settings on the HMRC tab. If this is not currently entered in her HMRC tab in Salary Settings, she will be asked to add this when scheduling her next EPS and entering the amount of CIS incurred.
We know it can be difficult to keep track of all the changes made by HMRC, so we’ve prepared a guide to payroll facts and figures for 2023/24.
Important dates to keep in mind
Here’s a list of important dates to add to your calendar as you approach the end of the payroll year.
- April 5th – End of tax year 2022/23
- April 6 – Start of tax year 2023/24
- April 19th – Closing of filing deadline for tax year 2022/23
- May 31st – Time limit for providing P60 to employees
- July 6th – Deadline to report Employer Class 1A NICs for Payrolled BIK (P11D(b)).